Form 327 "Film and Digital Media Tax Credit" - New Jersey

What Is Form 327?

This is a legal form that was released by the New Jersey Department of the Treasury - a government authority operating within New Jersey. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on March 1, 2021;
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FORM 327
New Jersey Corporation Business Tax
(3-21)
Film and Digital Media Tax Credit
2020
Name as Shown on Return
Federal ID Number
Unitary ID Number, if applicable
NU
Read the instructions before completing this form
Note: This form is to be used for privilege periods and tax years beginning on or after August 1, 2018.
Combined Return Filers
The taxpayer is included as a taxable member on a New Jersey combined return. See instructions.
Fill in oval if member is not sharing its credit with other members of the group.
Part I
Qualifications
1. Has the taxpayer been approved by the New Jersey Economic Development Authority to receive a Film
and Digital Media Tax Credit? ......................................................................................................................
YES
NO
2. Has the taxpayer received a paper tax credit or credit transfer certificate issued by the New Jersey
Division of Taxation? ....................................................................................................................................
YES
NO
Check the box to indicate the original certificate has been submitted to the Division of Taxation .......
3. Does the taxpayer have a tax incentive profile on the New Jersey eCerts portal with a Film and Digital
Media Tax Credit amount available for use? ...............................................................................................
YES
NO
NOTE: If the answer to question 1 or both questions 2 and 3 is “NO,” do not complete the rest of this form. The taxpayer is not eligible
for this tax credit. Otherwise, go to Part II.
Part II
Calculation of the Available Credit
4. Enter the approved amount as shown on the tax credit or credit transfer certificate for the current
privilege period or tax year or the amount that is available in the taxpayer’s incentive profile on the
eCerts portal .......................................................................................................................................
4.
5. Film and Digital Media Tax Credit carried over from the prior privilege period or tax year .................
5.
6. Total credit available (add lines 4 and 5) ...........................................................................................
6.
Part III
Calculation of the Allowable Credit Amount and Carryover
(Combined return filers DO NOT complete Part III. Continue with Part IV.)
7. Enter tax liability from page 1, line 2 of the CBT100, CBT-100S, or BFC-1 .......................................
7.
8. Enter the required minimum tax liability (see instructions) ......................................................................
8.
9. Subtract line 8 from line 7 ...................................................................................................................
9.
10. Other tax credits used by taxpayer on current year’s return (see instructions):
(a)
(b)
(c)
(d)
......................................Total
10.
11. Subtract line 10 from line 9. If zero or less, enter zero .......................................................................
11.
12. Allowable credit for the current tax period. Enter the lesser of line 6 or line 11 here and on Part I,
Schedule A-3 of CBT-100, CBT-100S, or BFC-1 ................................................................................
12.
13. Amount of credit carryover to following year’s return (subtract line 12 from line 6) ............................
13.
FORM 327
New Jersey Corporation Business Tax
(3-21)
Film and Digital Media Tax Credit
2020
Name as Shown on Return
Federal ID Number
Unitary ID Number, if applicable
NU
Read the instructions before completing this form
Note: This form is to be used for privilege periods and tax years beginning on or after August 1, 2018.
Combined Return Filers
The taxpayer is included as a taxable member on a New Jersey combined return. See instructions.
Fill in oval if member is not sharing its credit with other members of the group.
Part I
Qualifications
1. Has the taxpayer been approved by the New Jersey Economic Development Authority to receive a Film
and Digital Media Tax Credit? ......................................................................................................................
YES
NO
2. Has the taxpayer received a paper tax credit or credit transfer certificate issued by the New Jersey
Division of Taxation? ....................................................................................................................................
YES
NO
Check the box to indicate the original certificate has been submitted to the Division of Taxation .......
3. Does the taxpayer have a tax incentive profile on the New Jersey eCerts portal with a Film and Digital
Media Tax Credit amount available for use? ...............................................................................................
YES
NO
NOTE: If the answer to question 1 or both questions 2 and 3 is “NO,” do not complete the rest of this form. The taxpayer is not eligible
for this tax credit. Otherwise, go to Part II.
Part II
Calculation of the Available Credit
4. Enter the approved amount as shown on the tax credit or credit transfer certificate for the current
privilege period or tax year or the amount that is available in the taxpayer’s incentive profile on the
eCerts portal .......................................................................................................................................
4.
5. Film and Digital Media Tax Credit carried over from the prior privilege period or tax year .................
5.
6. Total credit available (add lines 4 and 5) ...........................................................................................
6.
Part III
Calculation of the Allowable Credit Amount and Carryover
(Combined return filers DO NOT complete Part III. Continue with Part IV.)
7. Enter tax liability from page 1, line 2 of the CBT100, CBT-100S, or BFC-1 .......................................
7.
8. Enter the required minimum tax liability (see instructions) ......................................................................
8.
9. Subtract line 8 from line 7 ...................................................................................................................
9.
10. Other tax credits used by taxpayer on current year’s return (see instructions):
(a)
(b)
(c)
(d)
......................................Total
10.
11. Subtract line 10 from line 9. If zero or less, enter zero .......................................................................
11.
12. Allowable credit for the current tax period. Enter the lesser of line 6 or line 11 here and on Part I,
Schedule A-3 of CBT-100, CBT-100S, or BFC-1 ................................................................................
12.
13. Amount of credit carryover to following year’s return (subtract line 12 from line 6) ............................
13.
Name as Shown on Return
Federal ID Number
Unitary ID Number, if applicable
NU
Part IV
Calculation of Allowable Credit Amount and Carryover – Combined Return Filers ONLY
Section A – ALL Combined Return Filers
14. Enter the group tax liability from Schedule A, Part III, line 5, column (a) of CBT-100U ......................
14.
15. Enter the aggregate minimum tax of combined group members (see instructions) ...........................
15.
16. Subtract line 15 from line 14 ...............................................................................................................
16.
17. Other tax credits used by combined group on current year’s return (see instructions):
(a)
(b)
(c)
(d)
......................................Total
17.
18. Subtract line 17 from line 16. If zero or less, enter zero .....................................................................
18.
19. Allowable credit for the current tax period. Enter the lesser of line 6 or line 18. If sharing, also
enter in the member’s column of Part I Schedule A-3 of the CBT-100U ............................................
19.
If SHARING credit, complete line 20.
If NOT sharing credit, skip line 20 and complete Section B.
20. Amount of credit carryover to following year’s return (subtract line 19 from line 6) ............................
20.
Section B – Combined Return Filers NOT Sharing Credit
21. a) Enter combined group tax liability from line 14 ............................ 21a.
b) Divide line 21a by the combined group allocation factor from
Schedule J, line 9 ........................................................................ 21b.
c) Member’s share of combined group tax liability – Multiply line 21b by member’s allocation factor
from Schedule J, line 9 ..................................................................................................................
21c.
2,000
22. Required minimum tax liability. ...........................................................................................................
22.
23. Subtract line 22 from line 21c. ............................................................................................................
23.
24. Other tax credits used by taxpayer on current year’s return (see instructions):
(a)
(b)
(c)
(d)
.......................................Total
24.
25. Subtract line 24 from line 23. If zero or less, enter zero .....................................................................
25.
26. Allowable credit for the current tax period. Enter the lesser of line 19 or line 25 here and in the
member’s column of Part I, Schedule A-3 of the CBT-100U ..............................................................
26.
27. Amount of credit carryover to following year’s return (subtract line 26 from line 6) ............................
27.
Instructions for Form 327
Film and Digital Media Tax Credit
Purpose of this Form
Use Form 327 to claim any Film and Digital Media Tax Credit and/or credit carryover against the tax otherwise due under the Corporation
Business Tax Act (P.L. 2018, c.56, amended by P.L. 2019, c.506 and P.L. 2020 c.156). A corporation may claim this credit for qualified film
production expenses and/or any qualified digital media content production expenses incurred between July 1, 2018, and June 30, 2028.
The amount of the tax credit not applied to the current tax period due to the applicable limitations can be carried over to the seven privilege
periods following the original privilege period for which the credit was allowed.
Note:
Complete only Parts II and either III or IV if the full amount of the Film Production Tax Credit claimed on the current return is the
result of a Film Production Tax Credit carried forward from a previous privilege period or tax year.
Parts III and IV are used to calculate the allowable credit and carryover. Taxpayers filing Forms CBT-100, CBT-100S, or BFC-1 complete
Part III and CBT-100U filers complete Part IV.
Combined Return Filers
If filing a combined return, this form must be completed by the member that earned the credit. All combined return filers must check the
combined return filers box at the top of the form and complete Part IV, Section A.
Members Opting Not to Share. In general, tax credits are earned by a member of the combined group and are shareable with the com-
bined group. However, members are not required to share their credits. See N.J.S.A. 54:10A-4.6.i and TB-90(R), Tax Credits and Combined
Returns. In addition to Section A, members that choose not to share must also complete Part IV, Section B and fill in the oval at the top of
the form to indicate they are not sharing the credit.
Part I – Qualifications
To be eligible for the tax credit, the answer to question 1 and either question 2 or 3 must be “YES.” If the answer to question 1 or both 2 and
3 is “NO,” the taxpayer is not entitled to the Film and Digital Media Tax Credit.
If the taxpayer received a paper tax credit certificate, the original certificate and a copy of the completed Form 327 must be submitted
by mail to the New Jersey Division of Taxation, CBT Refunds/Tax Credits, PO Box 259, Trenton, NJ 08695-0259. Failure to submit this
documentation by mail will result in the delay and/or denial of the tax credit claimed.
Part II – Calculation of Available Credit
Line 4 – Enter the amount of the approved Film and Digital Media Tax Credit that is applied to the privilege period covered by the Corpora-
tion Business Tax return.
Part III – Calculation of the Allowable Credit and Carryover (for CBT-100, CBT-100S, and BFC-1 Filers only)
For CBT-100, CBT-100S, and BFC-1 filers, the allowable Film and Digital Media Tax Credit is calculated in Part III. Combined return filers
do not complete Part III, and must complete Part IV instead. The amount of this credit in addition to the amount of any other tax credits
taken cannot exceed an amount that would reduce the total tax liability below the statutory minimum.
Line 8 – The minimum tax is assessed based on the New Jersey Gross Receipts as follows:
New Jersey Gross Receipts
CBT-100/BFC-1
CBT-100S
Less than $100,000
$500
$375
$100,000 or more but less than $250,000
$750
$562
$250,000 or more but less than $500,000
$1,000
$750
$500,000 or more but less than $1,000,000
$1,500
$1,125
$1,000,000 or more
$2,000
$1,500
If a taxpayer is filing a separate return and is a member of an affiliated or controlled group that has a total payroll of $5,000,000 or more for
the return period, the minimum tax is $2,000. Tax periods of less than 12 months are subject to the higher minimum tax if the prorated total
payroll exceeds $416,667 per month. The minimum tax is $2,000 for each member of a combined group that has nexus with New Jersey.
Line 10 – Taxpayers claiming multiple credits must list any credits already applied to the tax liability to ensure accuracy of the calculation for
maximum credit allowable.
Part IV – Calculation of the Allowable Credit Amount and Carryover for Combined Return Filers
For CBT-100U filers, the total and allowable Film and Digital Media Tax Credit for the current year is calculated in Part IV. All combined
return filers must complete Section A. Members that choose not to share their credit must also complete Section B.
Section A – To be completed by ALL combined return filers
This section calculates the amount of credit allowable for the group. If a member chooses not to share their credit with the group, Section A
must still be completed to ensure the credit allowed for the member does not exceed the amount that would otherwise be allowed against
the group tax liability.
The amount of the credit calculated in this section cannot reduce the tax liability to an amount less than the aggregate statutory minimum
tax of the group members.
Line 15 – Multiply the number of taxable group members by $2,000 and enter the result.
Line 17 – Combined groups claiming multiple credits must list any credits already applied to the group tax liability to ensure accuracy of
the calculation for maximum credit allowable.
Section B
This section is used to calculate the amount of credit allowable for members that choose not to share their credit with the group. Section B
is completed based on the member’s share of the group tax liability. The amount of the credit calculated in this section cannot reduce the
tax liability to an amount less than $2,000. The amount of the credit is also limited to the amount that would otherwise be allowed against
the group tax liability if the member had been sharing the credit.
Line 24 – Members claiming multiple credits must list any credits already applied to the member’s tax liability to ensure accuracy of the
calculation for maximum credit allowable.
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